On April 25, 2023, the State Bank of Vietnam (SBV) officially approved the legal transformation and granted a new establishment and operation license to Saigon- Hanoi Commercial Joint Stock Bank Finance Company Limited (SHB Finance) in the process to divest to Krungsri Bank of Thailand.

According to the Decision No. 759/QD-NHNN by the SBV and the Establishment and Operation License No. 21/GP-NHNN dated April 25, 2023, SHB Finance officially converted from Saigon- Hanoi Commercial Joint Stock Bank Finance Single-member Limited Company to Saigon- Hanoi Commercial Joint Stock Bank Finance Company Limited.

Saigon- Hanoi Commercial Joint Stock Bank Finance Company Limited has the charter capital equivalent to VND 1,000 billion, of which Saigon – Hanoi Commercial Joint Stock Bank (SHB) owns 50% and Ayudhya Public Bank Limited (Krungsri) of Thailand 50%. The company headquarters and lines of business remain unchanged.

The new name of SHB Finance is Saigon – Hanoi Commercial Joint Stock Bank Finance Company Limited

This is one of the final steps in the divesture process of SHB Finance to Krungsri – a strategic member of MUFG Group (Japan).

Previously, the SBV approved in principle of legal structure conversion and the list of personnel consisting of members of both SHB and Krungsri  to be appointed as the Members’ Council and the Board of Supervisors for the term 2022. – 2025 and Chief Executive Officer.

The agreement signed in early August 2021 prescribes that SHB will transfer 50% of SHB Finance’s charter capital to Krungsri and the remaining 50% after 3 years. The first 50% charter capital transfer ceremony is expected to be held in May 2023.

Mr. Do Quang Vinh – Vice Chairman of the Board of Directors cum Deputy CEO of SHB stated that the divesture to Krungsri Bank would bring a significant capital surplus for SHB shareholders and foster the Bank’s financial capacity and fundamental factors, thereby promoting business activities in key segments, especially enabling massive investment in digital transformation… This deal also helps SHB to strengthen its capital buffer – one of the bases to accelerate Basel III implementation and the application of international financial reporting standards (IFRS) in 2023.

“The divesture deal and the above transformation process demonstrate even higher significance as the Bank’s 30-year anniversary together with the country’s development is approaching” emphasized Mr. Do Quang Vinh.

The SHB Finance divesture agreement brought a significant capital surplus for SHB as well as enhanced the Bank’s financial capacity and competitive edge

Ms. Olena Khlon – Standing Deputy CEO of SHB Finance commented that “The enormously potential consumer finance market in Vietnam, well regulated by the Government, presents itself as an ideal destination for foreign investors. The companionship of Krungsri – a big financial institution in the region will speed up our goal of becoming one of the leading financial companies and a companion to build a better life for every customer segment.”

After nearly 5 years of operation, SHB Finance ranks in the Top 10 largest consumer finance companies in Vietnam with a business network across 51 provinces and more than 7,000 employees.

Thanks to the rapid network expansion, updated technology and products that promptly serve customers’ financial needs and powerful risk management procedure, SHB Finance receives the very first Moody’s  B3 credit rating (stable prospect), becoming an official member of MasterCard and top 3 most popular employers.